The strategy is straightforward: first, we construct a rip-off of a well-known digital business. Second, we accuse each other of political persecution. Third, we use a SPAC to raise a large sum of money. Finally, we take on Amazon Web Services (AWS). What is even funnier is that I am not joking. That is not just a true plan, but it is one we already seen twice.
The Trump SPAC deal, which took a collection of ideas and very little product public, was the first time we heard of the approach of collecting cash. Then, with the online video hosting portal Rumble’s SPAC initiative, we got another dose yesterday. Both companies have long-term plans, or at least teasers, to compete with the existing cloud firms.
Do you wish me luck? With that objective, a hundred billion dollars, and 15 years, you might be able to achieve quaternary status near where the huge public clouds play. So, let us look at the Rumble plan for conquering the digital world. Startups, after all, built to make ambitious ambitions. Rumble’s plan to take on the combined might of Amazon, Microsoft, and Google is, to say the least, ambitious.
CF Acquisition Corp. VI and Rumble, a self-described “neutral video platform,” are uniting. According to the firms, the deal will conclude in the second quarter of 2022. The following are the deal’s financial terms (somewhat condensed):
Rumble is valued at $2.1 billion at the outset of the transaction, with current Rumble shareholders eligible to earn additional shares of the merged business if the stock hits price targets of $15.00 and $17.50 per share.
Rumble is projected to receive around $400 million in funds from the sale, which includes a fully committed PIPE of $100 million at $10.00 per share and $300 million in cash held in CFVI’s trust account.
Rumble is worth $2.1 billion, or will be next year when it merges with the blank-check firm, and you are right to be startled. After all, we do not have much information about it.
Crunchbase data shows that the firm has only received one round of investment, in May 2021, from Peter Thiel and J.D. Vance. According to The Wall Street Journal, the firm was valued at roughly $500 million at the time.
Rumble launched in 2013 but only lately gained public appeal because right-wing personalities promoted it as a “friendlier, free-speech alternative” to video offers from big platform providers like Meta and Alphabet, according to the Journal.